Thursday, September 16, 2021

Annual Return MGT 7A for Small Companies and OPC for Fin Year 2020-21 onwards

Annual return MGT-7A : For OPC and Small Companies w.e.f. F.Y. 2020-21, Form MGT-7A is to be filed instead of form MGT-7 dated 05.03.2021

Form MGT-7A is less descriptive than MGT-7. It does not require to be certified by Company Secretary and can be filed under Signatures of a Director of the company only. There are no columns for the following details in case of MGT-7A:

·         Date of AGM, Details of board meeting and Attendance of directors, Member/ other meeting details

·         Particulars of holding or subsidiary and Associate Company

·         Details of unclassified share capital, Break-up of share capital and details of Shares or Debenture transfer and pattern of shareholding as promoter or non - promoters

Due date of filing Form MGT-7A

Form MGT-7A is to be filed within 60 days from the date of AGM of the company. In Case AGM last date is 30th September then that last date for filing Form MGT-7A is 29th November every year.

Filing fees for Form MGT-7A within the stipulated time as charged by MCA is

In case of company having share capital- Nominal Share Capital

Fees Prescribed

Less than Rs. 1 Lac

Rs. 200

Rs. 1 Lac or above but less than Rs. 5 Lacs

Rs. 300

Rs. 5 Lacs or above but less than Rs. 25 Lacs

Rs. 400

Rs. 25 Lacs or above but less than Rs. 1 crore

Rs. 500

Rs. 1 crore or above

Rs. 600

 

Conclusion:

In case of OPC and small companies form MGT-7 has been replaced with MGT-7A. This form is to be filed for Fin Year 2020-21. MGT-7A is a simplified form of Annual Return for OPC and small companies and does not require certification by the Company Secretary in Practice.

SMALL COMPANY- AMENDED WIDENED CRITERIA UNDER COMPANIES ACT 2013

 

SMALL COMPANY-  AMENDED WIDENED CRITERIA UNDER COMPANIES ACT 2013

The definition under section 2(85) of Small company under the Act, is not amended but Clause (t) in Rule 2 (1) of Companies (Specification of Definitions Details) Amendment Rules, 2021  vide Notification No. G.S.R. 92(E). dated, 1st February, 2021 wef 01st April 2021 reads as follows:

“(t) For section 2 (85) (i)and (ii) of the Act, paid up capital and turnover of the small company shall not exceed rupees two crores and rupees twenty crores respectively.”

Therefore  the revised meaning for Small Company vis a viz old meaning is:

Criteria for Small Company

Old (Maximum i.e not to exceed)

New (Maximum i.e not to exceed)

 

Applicability

F.Y. 2020-21

F.Y.2021-22 onwards

 

Other than a public company

 

Paid-up share capital

Rs.50 lacs

Rs.2 crore

 

Turnover (as per profit and loss account for the immediately preceding FY)

Rs.2 crores

Rs.20 crores

 

Provided that nothing in this clause shall apply to—

(A) a holding company or a subsidiary company;

(B) a company registered under section 8; or

(C) a company or body corporate governed by any special Act;


Saturday, September 11, 2021

File Your Income Tax Return and E Verify it in easy steps

Easy way of  E Verifying your Income Tax Return which after filing either do it yourself or prepare for the same


- E verify through Mobile - Ensure your mobile number is linked with your Aadhar or get it linked on UID site
- E Verify through Bank Account - Give details of Bank Account , Whether Primary or Joint, IFSC Code, Type of Account, Branch Address and then your Mobile number linked with Bank Account number and E mail ID linked to that account.

- E Verify through D MAT Account, Net Banking Account and ATM Card is the other option for persons using such facilities or accounts.

Step by Step Income Tax Return Filing and E Verification

File your Income Tax Return Assessment Year 2021-22 i.e Financial Year 2020-21 

Login to Income Tax Portal at

Incometax.gov.in 

Enter PAN and then continue

Tick on Please confirm your secure access message

Enter Password  >  Continue

E File >  Income Tax Returns  > File Income Tax Return

Select Year 21-22

Online   or    Offline

Select Offline if you have json file Otherwise online

Select 139(1) Original Return or

Select 139(5) for Revised Return

 

Select Type ITR 1 or ITR 2 or ITR 3

Then select file json and then validate

After that please

 Select if want to

 e verify instant or

 e verify later

 Want to have ITRV and E Verify later

 

Want to e-verify your return Easy Steps

 I would like to verify using OTP on mobile number registered with Aadhaar

Generate Electronic Verification Code(EVC)

 Through Net Banking

Once you click on Continue, you will be logged out of e-Filing portal and will be redirected to a page, where you can select the bank to login through net banking

E-verify return using Net Banking

1. Login to the portal through net banking.

2. Go to respective functionality

3. Click on the e-Verify button against the corresponding ITR/Form/functionality

4. Your ITR/Form/functionality will be verified and process will be complete

Through Bank Account

To generate EVC, you need to validate and enable EVC on your bank account.

My Bank Account

By adding your bank account

We have to re validate the same and then enable for EVC.

It will take some time and then after getting message on mobile for validation successful, the EVC can be generated.

We can add Bank Account to:

1.   Add a bank account to receive refund.

2.   EVC can be enabled for Individual taxpayers and only for one validated bank account at any given point of time.

3.   To Enable EVC, Mobile number and Email Id as in e-filing profile should match with the details linked with the bank account.

4.   EVC can be used for following: verifying income tax returns and other forms, e-Proceedings, refund re-issue, reset password and secured login to e-filling account.

5.   Bank Account can be removed only if status is Validated or Validated and EVC enabled

6.   Validation failed accounts can be viewed under 'Failed bank accounts' tab.

7.   List of Bank Accounts listed to Generate EVC

-      Axis Bank Ltd

-      Canara Bank

-      Central Bank of India

-      ICICI Bank

-      IDBI Bank

-      Kotak Mahindra Bank

-      State Bank of India

Through Demat Account

To generate EVC, you need to validate and enable EVC on your demat account.

  By adding your demat account

  1. Generate EVC using this option.
  2. Using this option by quoting your PAN and Demat Account Number to reset your password using OTP(to the mobile number/email linked to the Demat account).
  3. Choose to secure your login using this option by entering User ID, Password and OTP(to the mobile number/email linked to the Demat account)

You can generate EVC through Bank ATM. To generate EVC through Bank ATM,      follow below      steps:

1.            Visit your bank’s ATM and swipe your ATM card.

2.            Click on the ‘Pin for Income Tax filing’.

3.               An EVC will be sent to the mobile number and e-mail ID registered with e-filing .

     This EVC is valid for 72 hours

     After generating EVC or OTP

     You can e verify your Income Tax Return

    By selecting

    - Instant through OTP on mobile linked with aadhar

    - I already have an Electronic Verification Code (EVC)

    - I already have an OTP on Mobile number registered with Aadhaar

   AND ENTER OTP OR EVC

  Successful message will be displayed.

Thursday, September 9, 2021

Procedure for Issue of Employee Stock Option Plan (ESOP)

ESOP (Employees’ Stock Option) is the option given to the directors, officers or employees of a company, its holding or subsidiary which gives such directors, officers or employees, the benefit or right to purchase, or to subscribe for, the shares of the company at a future date at a pre-determined price.

It is a right and not an obligation, therefore, if the shares of the company are valued at less than the exercise price of the option, then the employee need not exercise its right to buy the company’s shares.

Prerequisite for issue of ESOP:

i.            MOA to have adequate authorised share capital, if not, alter MOA accordingly by convening General Meeting

ii.          AOA to authorise issue of ESOP, if not, alter AOA accordingly by convening General Meeting

Process for issue of ESOP in an Unlisted Company:

i.                     Draft ESOP scheme

ii.                   Draft and send Notice for Board Meeting (min. 7 days’ notice)

iii.                 Convene Board Meeting to authorise via Board Resolution:

a.       Issue of shares under ESOP scheme

b.       Calling of General Meeting for approval of shareholder

c.       Issue of Notice of General Meeting

iv.       Call a General Meeting by sending Notice (min. 21 days’ notice) along with Explanatory Statement annexed therewith with the following disclosures:

a.       Total number of stock options to be granted;

b.       Classes of employees entitled to participate in the scheme;

c.       Requirements of vesting and period of vesting;

d.       Maximum period within which the options can be vested;

e.       Exercise price, exercise period and process of exercise;

f.        Lock-in period, if any;

g.       Maximum number of options to be granted per employee and in aggregate;

h.       Methods used for valuing its options;

i.         Conditions under which option vested may lapse;

j.         Statement that the company shall comply with the applicable accounting standards.

v.             Convene General Meeting and approve the scheme by passing Special Resolution (Ordinary Resolution for private company)

vi.          Separate Resolution is to be approved by the shareholders in case options are being granted to:

a.       Employees of subsidiary or holding company; or

b.   Identified employees, during any one year, equal to or exceeding one percent of the issued capital (excluding outstanding warrants and conversions) of the company

vii.            Grant options to the eligible employees

viii.           File Form MGT-14 with ROC within 30 days of passing the resolution

At the time of exercise of options:

i.                  Convene a Board Meeting to allot the shares under ESOP

ii.                Issue share certificates

iii.              Authorise stamping of shares

iv.            After allotment of shares, file Form PAS-3 (Return of Allotment) with ROC within 30 days of allotment

Disclose details of ESOP Scheme in the Director’s Report for the year:

i.                  Options granted/vested/exercised/lapsed;

ii.                Total number of shares arising as a result of exercise of options;

iii.              Exercise Price;

iv.               Variation of terms of options;

v.                 Money realized by exercise of options;

vi.              Total number of options in force;

vii.            Employee wise details of options granted

Maintain a Register of ESOPs:

To be maintained in Form SH-6 at the registered office of the company or such other place as decided by the Board.

 


Wednesday, September 8, 2021

The Compilation of statement required for Form 10BD for Donation received by Charitable Organisation

 

Filing of Statement of donations in Form 10BD is now mandatory for Charitable Organisations for allowing deduction for donations under sec 80G to the donors.

As per Notification No. 19/2021 [F. No. 370142/4/2021-TPL] / GSR 212(E) dated 26 March 2021, the entities having approval u/s 80G (5) and u/s 35(1) of the Income Tax Act,1961 requires to furnish a statement of Donations received by them wef  1st April, 2021.

Filing of Statement of donations (in Form 10BD) is mandatory for donations received during financial year 2021-22 is to be filed once for the whole year by 31st of May 2022.

Form 10BD shall be e filed by organizations using the digital signature of a person authorized to sign the return of income or through e-verification code (EVC)

The following information is required for filing the statement in prescribed format:



Therefore the done entity should maintain the following details of Donors

1.

Name of the Donor as per PAN card and PAN No. (Mandatory)

2.

Latest address of Donor as per ID proof Aadhar or Income tax records

3.

Amount, Section code, Type and mode of Donation received

 

Instructions to fill Section Code



 

After filing  Form 10BD, the reporting entity should download and issue Certificate of Donations in Form 10BE containing the details of reporting entity like PAN , Name of the entity, address of entity receiving the donation, approval numbers u/s 80G & 35(1) and amount  to be issued by 31st May 2022.

Therefore for donor it is not just sufficient to have a donation receipt, but to obtain a certificate of donation in Form 10BE after the end of the financial year for his claim of deduction.

Corrections in Form 10BD

In case of any errors or mistakes in Form 10BE, it may be rectified and hence additions, deletions, or modifications are possible.

Consequences for  Non Compliance for defaults

a)       The  delay to File 10 BD in time will attract a fee of Rs.200/- per day of delay as per newly inserted section 234G.

b)      The failure to file such statement will also attract penalty u/s 271K of not be less than Rs.10,000/- and which may extend up to Rs.1,00,000/-




B